Freight and infrastructure sectors give thumbs-up to Government’s transport network plans

Traffic congestion on the Tauranga Harbour Bridge. Photo / Alex Cairns

“It’s sad people don’t value their time enough sometimes,” says a heavy transport sector leader in support of the Government’s commitment to building 15 “roads of national significance”.

Dom Kalasih, interim chief executive of Ia Ara Aotearoa Transporting New Zealand, said the new roads would build economic resilience, keep freight and commuters moving and ensure transport costs stay down by providing a better network, particularly in congested areas of the country.

“In every major city, there is congestion. Everyone will benefit. It’s sad people don’t value their time enough sometimes - they take it for granted. Trucks are about one in 10 of traffic flow, so there’s 10 times the amount of public traffic [who will benefit],” said Kalasih, who heads a national industry association representing 1200 road freight transport companies.

Announcing the new Government’s draft land transport policy on Monday, Transport Minister Simeon Brown heavily hinted that the Government would include the roads in its fast-track consenting process, with details coming later this week. This would mean the new roads would be automatically consented, with consenting panels having the ability only to attach conditions to the consent, rather than being able to block it.

“Tackling consents certainly helps to drive down those costs, particularly around some of the conditions that we’re seeing attached to a lot of these projects,” Brown said.

Prime Minister Christopher Luxon gave a strong commitment on Monday to getting the roads built despite cost challenges, saying they were essential to building a productive economy and comparing the poor state of New Zealand roads to those overseas.

To help raise revenue to support its transport network improvement plans, the Government also announced fuel tax rises starting in 2027, an increase in road-user charges and a $50 rise in vehicle registration fees.

Don Braid, managing director of NZX-listed global freight and logistics operator Mainfreight, said it would be helpful to understand better the Government’s transport direction.

“So the consultation process would be a good avenue to do that. The lack of commentary around rail freight is of concern, particularly long-haul. Inter-island rail services are vital for the freight task in New Zealand. Rail freight is not just the Auckland, Hamilton, Tauranga triangle,” he said.

“The balance of the announcement is just good common sense.”

Don Braid, managing director of Mainfreight. Photo / Natalie Slade

Infrastructure NZ said it supported the re-introduction of 15 Roads of National Significance policy, which should be partially funded by road tolling.

Nick Leggett, chief executive of the infrastructure membership group, said the roads would improve productivity and safety across the roading network.

“This investment should be partially funded by road tolling of these routes. It’s important that investment in critical public transport services be maintained and advanced in major cities. Transport investment should be about the and/and [roads and public transport], not the and/or,” Leggett said.

“It’s positive the Government has found an increased source of revenue to fund transport through increased car registration increases.

“However, there needs to be an evaluation of the transport funding system to ensure that we have the revenue from both Government and users to fund the ambitions of the Government in the years ahead. As an example, urgent progress needs to be made on road-pricing for New Zealand. The Minister of Transport’s signal that all funding and delivery methods need to be considered for the roads of national significance will drive innovation and value for money.”

Nick Leggett, Infrastructure NZ chief executive.

National Road Carriers’ Association chief executive Justin Tighe-Umbers said the Government’s draft policy statement on land transport was “great news for the road freight sector and the economy”.

With 93 per cent of goods delivered by road, “investment in roading is investment in the economy – everyone wins”, he said.

“This policy is geared towards getting the basics right. That means restoring the damaged road network so it is fit for purpose, continuing to look after it, and investing in the future roads we need to support a growing economy.”

The draft policy’s $500 million pothole prevention fund sent a strong signal that getting the basics right was critical, he said.

Transporting NZ’s Kalasih said a calculation around the current detours situation at the Brynderwyn Hills north of Auckland was an example of the cost to the economy of a poor roading network. The hills are closed for repairs until May 12. Two detours are in place.

Kalasih said based on a calculation of 1100 trucks taking the longer detour route between Auckland and Northland, it would add $250,000 a day to current freight costs, adding 55 minutes to the journey.

A car rental operator, Go Rentals, says the increase in registration fees came on top of other price rises the business faced.

‘‘A further cost increase coming operators way in a landscape where inflation has driven significant change to operational overheads, this is one in a long line of cost escalations we have seen in our business during recent times,’' said chief operating officer James Dalglish.

‘‘Ultimately the consumer pays, however, I do sincerely hope that the increases are put to good use in terms of building better roading infrastructure or the like.’'